Clogs to Clogs -Family Constitutions and Family Disputes

Many cultures have sayings that the first generation creates the wealth, the second manages it, and the third dissipates it.

Within three generations the family goes from “clogs to clogs” or “from stable to stars to stable”. Modern business families increasingly put in place “family constitutions” setting out their ethos and clarifying the way in which family members are involved with the business.

The transfer of responsibility and control between generations can create issues for modern business families, including the risk of disputes within the family and the subsequent dissipation of wealth.

This article provides advice on how family constitutions can help to mitigate this risk by setting out the family’s core business values and addressing sensitive topics, such as how succession will be handled and whether key business roles should always remain in the family.

Click here to review or download the article.